Buying distressed properties can be enticing for buyers and potential investors as they can avail these properties in the least amount of money spent. Investing in distressed properties can be a fruitful deal for house-flippers and rehabbers because they invest just a little capital to get maximum returns from the sale. Although it is extremely important to understand the know-how of the particular topic.
If you are planning to buy or invest in distress properties you have chosen the right bay we are here to enlighten you, and also share some pro-tips for buying distressed properties.
Find Properties Around The Locality
To find properties it is advisable to start with the locality, there are some things you’ll have to look for while buying a house. Signs like –
- Overgrown plants around the property
- Chapped exteriors that need new painting
- No electricity or electricity supply
- Legal notices pasted on doors
- Newspapers or deliveries lying outside of the home
These are some signs of how you can identify a distressed property. Once you know the location and pick the house of your choice, you can get in touch with a local tax assessor for extracting information about the whole property. Some homeowners keep their information accessible with a note of ‘To sell’ or ‘Available for sale’ with a phone number so you can easily get in touch with them.
Invest In A Good Neighborhood
Buying a home in a good neighborhood is always essential for futuristic planning if you want to further sell it; a healthy neighborhood will eventually become the point of focus for buyers. If you find a place that has a gloomy neighborhood the chances of people buying the home is naught also, the probability of regaining a lively society is next to impossible. On the other hand, if your house is in a good neighborhood it will be sold faster and a large bunch of people would invest in it.
Walk-Through Of The Distressed Property
A walkthrough is an important aspect before buying a distressed property, it ensures the conditions of the house and gives you a brief of required upkeep. The buyer eventually is liable to make the repairs and examine other prerequisites of the property in case of resale scenario.
A specialty home inspection also comes in easy reach while talking about distressed property. The inspector will keenly examine the home and enlist all the potholes that need to be filled. He or she will also provide you with a detailed estimate required for the maintenance and further repairs although, it is advisable to keep aside a fair amount of 20% to cover the expected and non-expected repairs to avoid havoc of mishaps.
Know About The Local Laws About Foreclosure
You should also comprehend the laws of the locality; if you are residing in New York purchasing a distressed property could be much more time-consuming than expected, in some places the judicial process can take up to 12 months while in other states lenders will close the deal in less or in about 60 days. Hence, buying a distressed property in New York can be a tough task in itself.
The foreclosure laws tend to vary from state to state, as a prospective buyer you are required to your due-diligence beforehand. Additionally, the processes may also vary due to the constant changes in law or jurisdiction. It is always advised to get in touch with a lawyer before proceeding with the process of buying distressed properties.
Seek Professional Help To Cut Down Time
Distress property buying process includes a lot of chaotic situations which wastes a lot of your time. In many instances, it takes months to settle a deal because there are more parties involved other than the homeowner. In such cases, it’s advisable to hire a real estate agent experienced with distressed sales, who will help save your time. A specialized real estate agent knows all the technical know-how related to the topic.
Primarily, you should limit yourself to foreclosures because short sales might show a scarred credit score which is never good for a homebuyer or an investor. However, in short sale, possibilities of properly maintained properties are higher since the homeowner controls it and is encouraged to sell at a good price.
Keep Finances in Place
The most important part before buying a distressed property is to get a pre-approved mortgage as lenders or the third party (banks) will only accept serious offers or investors. As a point to shed light on, this is a very competitive market, investors and house-flippers will buy distress houses as-is and rehab it to sell it to bigger property management companies for a better cost. These people mostly make an all-cash offer here, you’ll have to put forth pieces of evidence of how you are reliable as a buyer for the bank or lender to accept your proposal.
There are some more things we’d like to shed light on as a disclaimer-
- If the house is in a really shabby condition, there are zero chances that the bank will get you pre-approved
- You might want to spend more than expected funds in the property if it has a wide and long list of damages
- In worst case scenarios you’d have to opt for a second loan to cover the repair costs
- If you find getting pre-approved is a task tagged impossible you could consider other lenders or lending sources like credit unions or regional banks; these people pay to people who have a flawed credit score
- Opt for FHA loans that require down payments with smaller digits
- Conduct a due-diligence to determine credit lien or taxes are filed in contradiction of the property to ensure you don’t suffer through any catastrophe
We Buy Houses Any Condition
Companies that buy houses for cash could be a savior to you. Companies that buy houses as is are a lot easier to work with they buy your worn-out property and flip it later, post flipping they sell remodeled houses for a better price to interested buyers or investors. When you choose these companies you don’t have to worry about the paperwork and legal procedures including the repair and improvement costs. If you want to buy distressed properties from such home buying companies they will present you with an all-new version of your dream home with no repair required.
Last Words, Before You Make an Offer
Now, when you know the fundamentals of buying a distressed property rest assured you will make the best offer with all this knowledge in your pocket. Keep in mind putting money on a distressed property would not be your ideal plan but it will certainly give you maximum return after carrying out the extensive repairs. If you find yourself stuck in any other real estate crisis feel free to get in touch with us at ‘Elite Properties’ we promise to cater to all your queries and provide you with best possible solutions.
Water is one of the most destructive elements which can enormously damage the whole structure of your house. Damages can occur due to floods, heavy rains or constant leakage from water pipes. It is tremendously necessary to act fast as soon as you see droplets seeping in your house and before it deteriorates all parts of your property.
We understand occurrences of these situations are not pre-determined but the solutions can be so, here we are shedding light on the topic, what to do to sell a house with water damage.
Act Fast, To Save From Water Damage
The very first thing you’ll have to do is to get all the valuable items out of the flooded or wet area and shift it to a dry place. Wooden furniture has a propensity to absorb water and retain it for a long time which could be damaging. By being proactive and moving the furniture you can save potential future repair costs.
If your home does not have enough sunlight coming in, you should switch on the fans and dehumidifiers; they’ll help in drying the areas much faster. Places like basements are known as dark spaces they have no sunlight seeping in at all, and the decay there is rapid and comparatively faster than any other space in the house.
If your house is under insurance you should get in touch with the company at the soonest. The next step is to click pictures of the damage caused by the floods, being thorough in the detailed documentation will help a lot as a piece of evidence also, when you sell your house it acts a proof of honesty towards prospective buyers.
Evaluate the Damage and Start Cleaning
It’s not just water that is going to do damage the house there are additional elements that come into play like mold, which can cause permanent damage. As it takes just 48 hours for mold to germinate, as soon as things get in contact with the mold it will start defiling the furniture, walls, ceilings and other junk as well.
Post floods you can evaluate what items are majorly damaged if there are wooden pieces they can be recovered within 6 weeks but, if you have furniture made from particle board or bison board it won’t be saved. If there is any upholstery that has come in contact with water it has to go to the dry cleaners, these people know how to deal with such fabrics. You can also promptly wash the clothes which were soaked in flood water to avoid decay and mold formation. Kindly note, the organic fabric can immediately clasp mold, it is advised to wash them as soon as possible.
Avoid Expensive Repairs
Water damage can hit hard on your pockets and if you are thinking of repairing the damages caused by floods, think twice. Carrying a repair work would cost you dollars and burn up your equity taking it further by extending the repair costs. You could consider talking to some contractors around to get the best bid for the repair work. If your house has been damp for many days for obvious reasons it would require mold repair, ceiling repair, painting so on and so forth. Hence, as improvements will require a lot of capital it is advisable to sell your house for cash by doing this you are not only getting rid of the water damaged property but also getting a fair deal in all cash.
Selling House As-Is
As mentioned above you will have to act fast and make decisions accordingly as water can severely harm surfaces of your property but, what if you miss out on things and fall in a troublesome situation? The best way you can tackle the scenario is by selling the property to companies that buy houses for cash. When you do not have enough funds for repair and you don’t want to waste your time on the prolonged process of selling house as-is will act as a savior in this situation. It is the best route to cut down your time and save dollars.
We Buy Houses Any Condition
We have provided you some essential tips that can come handy while you plan to sell your house with water damage. There are companies that buy houses as is like ‘Elite Properties’ which will buy houses in any condition and close the deal in as less as 3 days. So, whatever the damage could be they’ll buy your house and set you free from the ugly property and never-ending paperwork. Furthermore, if you are facing any other real estate crisis you can get in touch with us www.elitepropertiesny.com we’ll be happy to help you and give you the best possible solutions.